IMF Grants Zambia Three-Month Extension for Credit Facility

The International Monetary Fund (IMF) Executive Board has approved Zambia's request for a three-month extension of its Extended Credit Facility (ECF) Arrangement, extending the deadline from October 2025 to January 30, 2026.

In a statement released Monday, the Ministry of Finance and National Planning confirmed that the Executive Board approved the extension "to allow sufficient time to complete the Sixth Review of the ECF Arrangement and lay the groundwork for future program engagement."

Finance and National Planning Minister Dr Situmbeko Musokotwane welcomed the IMF Executive Board's decision, stating that "this development demonstrates their confidence in working with Zambia in completing the Sixth Review of the ECF Arrangement, and laying the groundwork for future Programme engagement."

The 38-month ECF Arrangement was approved by the Executive Board on August 31, 2022, with access of SDR 978.2 million. The programme was later increased by 30 percent of quota in June 2024, adding approximately US$385.7 million to support Zambia's economic recovery efforts.

According to the Ministry, the ECF arrangement has been instrumental in stabilising the economy by reducing inflation, strengthening fiscal discipline, and anchoring debt restructuring. The programme has also played a key role in sending positive signals to both domestic and international investors that Zambia represents a secure and promising investment destination.

The extension provides Zambia with additional time to finalise outstanding programme requirements while maintaining the momentum of economic reforms that have helped restore macroeconomic stability and investor confidence in the country's financial prospects.